New Delhi, Oct. 5 -- The government is moving to build domestic capacity for rare-earth permanent magnets, which are critical for automobiles, electronic hardware and other manufacturing, Principal Secretary-2 to the Prime Minister Shaktikanta Das said at the Kautilya Economic Conclave 2026.

Das said the government has responded to vulnerabilities in the global rare-earth magnet supply chain by initiating measures to develop domestic capabilities in the sector, pointing to the importance of these materials for a wide range of industries.

"The central government came out immediately thereafter with a major initiative to develop domestic capacity in rare earth permanent magnets," Das said.

He said rare-earth magnets are an important comp...